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Traders Unwind Long Positions As Major Indian Indices Pause

India Volatility Index Continues To Trade Near Record Lows



A financial trader monitors reaction of global markets (Photographer: Jason Alden/Bloomberg)
A financial trader monitors reaction of global markets (Photographer: Jason Alden/Bloomberg)

Traders unwound existing positions as benchmark Indian equity indices made intraday record highs. The Nifty 50 Index March futures open interest fell of 4.4 percent. The Nifty Bank index similarly saw a reduction in long positions with its March futures open interest declining 2.7 percent.

The unwinding in index futures was led by foreign institutional investors (FII) who reduced long positions by 2,025 contracts. FIIs on the whole sold index futures worth Rs 137 crore on a net basis.

The India Volatility Index retreated 0.5 percent to 11.85 and continued to trade near record low levels. This shows reduced anticipation of volatility in Indian equity market in the near-term. Maximum open interest in options remained with 9,200 call and the 8,800 put, which broadly indicates a range for the Nifty in the near-term.

FIIs placed their bets evenly between index call and put options. FIIs bought 7,579 index calls and 9,275 index puts on a net basis on Friday.

Traders Unwind Long Positions As Major Indian Indices Pause